Topic: Financial Institution who control's the Market (Read 259 times)

You seem to not understand the stock markets at all. Any company who issues stock has a highly vested interest in making you money, as so will they (they control the most shares),.  Same thing goes for stock or bond funds.  It’s advantageous to issuer and buyer to do well. The stock market equities are backed by tangible goods, services, real world businesses etc.  

Gold is not an investment , it’s a hedge that sure, can end up being a good investment.  Upside potential is not really there for gold though. Not atm.. Also you seem to not be aware of how corrupt and manipulated the precious metals space “markets”, market makers, miners etc] are.



“it is safe for every person and if a person has a small amount of investment,he should invest his money in gold and should invest in gold biscuits”.

You don’t know what you’re talking about.

https://www.imdb.com/title/tt2335304/ A French documentary about one of the world's biggest banks and its influence on everyday life.

They earn from debt, but they earn from many other things as well. Everyone should watch this movie, many names from the political and financial world worked for Goldman Sachs at one point. They have people in all governments and financial institutions, who are extracting money from countries in incredible ways... and no one can stop it. Watch the movie to see how banks make money from other people's misfortune and emerge even richer from every major crisis. And all this in a completely legitimate and legal way. Is it moral? Far from that, those bankers do not have a moral compass, some special way of thinking guides them.

The guys are right about these financial institutions don't really control the market but they manipulate and influence the other players in the direction that they want to go. While it's good that OP has shared these as they're all related to the financial market globally or mainly in the US. And at the same time, the ETFs that have been also applied to Bitcoin, the impact is so big and these players are also in. So, with mainstream adoption and attracting the investors that don't want to directly invest to Bitcoin, they're there to help them and eventually those investors will learn that it's best to go directly to the actual market that Bitcoin has rather than to go through with these institutions.

Those who "control" the market are big institutional players with huge amounts of money so their actions can influence the market. So (1) most of the things listed by OP are incorrect, and (2) it's not "control" per se, but the power to influence the market via buying/selling/short/long action since they have lots of money.

1. Wall Street isn't an institution but a place where Financial Institutions HQs are historically there.
2. A Hedge Fund isn't an institution but a pooled managed fund, Hedge Fund firms are the institution.
3. VC firms generally invest in the soon-to-be unicorn, so it doesn't influence the market that much.
4. A Mutual Fund isn't an institution but a pooled managed fund, Mutual Fund firms are the institution.
5. An ETF isn't an institution but a tradable index that tracks multiple underlying assets, ETF providers are the institution.

So big players in these institutions have different degrees of influence on the market, based on how much fund they hold. Since there are numerous big players, it's harder to control the market unless they collude. Unlike Binance with its simple list or delist decision can moon or tank the coin price.

I don't like that kind of funds because we can't trust anybody in the World. When we concern about money ,everyone is greedy and everyone is ready to cut our neck but they don't show they are enemies of us but they claim they are sincere with us. In fact, they want our money and they are only agents and they want to invest our money through which they will get the percentage from that amount and they will get the promotion. Every should invest his on real things like property,I like property and it is safe for every person and if a person has a small amount of investment,he should invest his money in gold and should invest in gold biscuits.

one of the many ills in our society is that people without much knowledge think they are the wisest people on this planet.
You can see that here and on Tiktok/instagram/Facebook where 20+ year olds give financial advise. 

As a long time financial advisor, the vast majority of people on here simply do not have a clue about how the financial world works.  This is actually a really decent write up about how some of the financial world works. 

One thing I would like to add, these days actively managed Mutual Funds are really a waste of money.  ETFs (and there are actively managed ETFs) are a much better route overall for investing in to stock or bond funds. 

Another type of fund to mention would be CIT's, Collateral Investment Trust funds.  These have become quite popular in todays world for retirement plans such as 401k's / 457b's / 403b's etc.  They tend to be the lowest cost funds there are, but the negative is they are not regulated by the SEC, but the states comp troller, and there is a level of lack of transparency that I'm not fond of.

The feds or the the Federal Reserve Board is the basically the central bank. Or its overseer.
https://www.federalreserve.gov/aboutthefed/the-fed-explained.htm

^
the FED should have been the first on the list. it's the one setting up the rates for which the rest of the institutions are just milking the situation as the market reacts to what the FED is doing.

or the lawmakers too. they are the ones doing those inside trading. Nancy Pelosi seems to be the first to make money whether the bill will be vetoed or not, she's making money.

Don't forget about the FEDs. Whenever they adjust the interest rates or have some announcements, the market either crumbles or reacts as soon as possible.

They are still learning about this market but it won't be surprising anymore if these bigger players are on it for the game. I mean, they're already here and they're able to pass on with the ETFs and that's how they're going to probably influence the market.

The only one controlling the market would be the central bank. And even when they fail the markets continue without them.
Just look at Zimbabwe and Venezuela. Both markets collapsed, and rose again due the devil $, Completely without their respective governments.

Yeah and that situation will favor those who controls  the market. That is actually the best time to snipe the good entry if you are that skilled enough to spot a very good timing. Crypto is really a battlefield that big players would love to play as it is really on their advantage if they will do something that creates chaos just to manipulate.

It is good to learn and know about all the different types of financial institutions that are out there, but you should also not assume that you are playing the same game. Remember that in some ways the smaller players might have advantages, because having such huge amounts of money can actually be a curse when searching for value. If they have a vast pot to spend, they might only be interested in companies worth billions and if they make an offer to buy them outright - the price might get jacked up. You have to figure out where you can make the greatest returns because there are always opportunities out there for even the smallest shrewd investors.

True that, these institutions with their authority and influence tend to manipulate the market.  They can freely spread hype and fear to individuals and affect the people's emotions into doing something that can collectively affect the market trend.

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@OP let me give you the last needed merit for you to rank up!  Congratulations on ranking up to Hero!

They do not really "control" the market but manipulate it, that's different. Control would mean that they would have never crashed, because if they are the ones who control it, they would haven ever let 2008 happen, that was terrible for them and did ruin many companies as well. What they do is manipulate the market, they make whatever they want go up, and whatever they want go down, but they do not have the ultimate power over it.

Like look at the GME stock thing that happened a few years ago, if they were so capable of doing it, retail investors wouldn't be able to get it to go up when the funds wanted it go down, they tried to manipulate but failed. Control means more power, manipulate means just their desire and wishes that they do with their money.

None of those mentioned control the market.
If 3 fail, no market will crumble,
if 6 fail no market will crumble. and so on.

Banks are also responsible for this economical factors affecting the economy.The banking sector is vital to the U.S. and world economies at large.Banks failures has lowered the confidence that people have in the financial systems whereby laying a decrease in the economic growth.
Banks are regulated by the governments and so they're in charge of conducting various monetary policy and financial marketing activities.

These are the whales causing so much short term crashes in Bitcoin price, although on long run it's possible they help making Bitcoin more valuable. Anyway, the idea os having those whales holding large amounts of Bitcoins never sounds good, because it means they have influence and power inside the market, making average investors who own just few coins their hostages in a sense. The ideal would be that each investor got introduced to crypto investments by themselves, being the owners of their own keys, instead of trusting it to an external fund managed by middlemen.

If each person had total control over their funds, the market would be less vulnerable to manipulation. What we see nowadays is a single entity managing funds of hundreds or thousands of investors at same time, what means they can converge this whole money to attend their own personal purposes. Crashes due to ETFs expiring is an example of that. In the end it helps those wealthy people getting more wealthy at the expense of average investors.

I'm not that aware of what op said here to be honest. But now, at least I have my idea about these things, the financial institution is really very broad, I thought before when it was said business it was that in general. By the way, there are different categories where these are located. 

So we can say that the Mutual fund is really safe, so it means that Sunlife and Manulife are also covered here, right? And now the ETF has been added which seems to have provided ease to get a portfolio of assets that will be a source of profit in the future. And it turns out that fund managers are also lucky even though their work is also heavy.

Bro thinks he's slick as fuck with that kind of notion.

If I say out of nowhere that you owe me 10,000 bucks, and I have it in writing, notarized by a lawyer, and accepted by the government, will you accept the debt and pay me my sweet sweet 10Gs? I don't think so, matter of fact, you might even punch me in the face if I did that. Now why is it that you don't get how interest works? That's literally money made out of nowhere, money that the banks just made because they think you owe them that much on top of the capital debt that you took out from them.

You even have the option to just pay the capital and take them to court so they don't charge you for the interest, but you can't take them to court to forgive your capital debt. You think the government would be able to do that if interests weren't made out of thin air? You perhaps should ask yourself where you're getting your information from instead, cause you're the one out here who clearly doesn't understand how money works in the first place. Too much redpill and reddit you think you're smarter than me already. nah fam. check yourself you slobbering buffoon.

Open a Bank, than you see that it is not done out of nowhere.
What financial degree did you make?

You forgot about banks my friend! The most important part of the capitalistic economy we're in right now!

These fuckers literally make money out of nowhere, something these hedge funds or whatever you have listed here couldn't do even if their lives depended on it. And how do they do it? With debt of course!

They give out loans to people, which they get the capital to provide loans for from people who entrusted their money to them, and they put out a little interest (a massive one really let's be real here) on top of your loan to scare you into paying them. When things fall into place and you do pay them out, the money you got loaned which is really their customer's money is given back to the customer, giving them a teeny-tiny portion of the money they just loaned out, and they take the massive interests they made you owe, which is already money materialized out of nowhere.

That's why in court orders and stipulations, where the debtor couldn't buy out his whole loan, the court declares you not debt-free, but only interest-free, they literally know that interest is money made out of nowhere and in worst-case scenarios just asks you to pay what you really owe.

Plus banks grown in a capitalistic setting is just too big to fail, that even if they do fail, the government is obliged to help them no matter what. Just look at what happened to SVB last 2022, they got bankrupt because of their stupidity, and instead of wallowing in their own shit and tears the government intervened and provided them with money, no questions asked. Isn't that just downright fucked?

In the world of crypto, we often hear about the Wall Street, institutional investors, hedge funds, and typically financial institutions that have a great influence on the cryptocurrency market. But most of us in this field do not have a background in finance and were first exposed to crypto because of NFTs, play-to-earn that we can quickly access compared to stocks and financial instruments that we have no idea about.

So here we will explain the typical financial institutions, not only in the traditional asset class but also in crypto. So let's start with:

1. Wall Street: This is a term that is often used in the world of finance and investment in the US. He is based in Manhattan, New York. This is the financial district where financial entities such as investment banks, stock exchanges, and brokerage firms are located.

This institution plays a major role in global finance by underwriting new stock offerings and facilitating mergers and acquisitions. And in providing brokerage services for trading security, As the crypto market has matured, many Wall Street firms are incorporating crypto and bitcoin into their portfolios. Just like offering services in futures trading, custody, and products related to crypto, the most recent here is the Bitcoin spot Etf.

So when it is said Wall Street, it is not just a firm, but rather its scope is wide.

2. Hedge Fund: You often hear this on social media. This is a firm that has a collection of money from investors, typically wealthy investors who invest in hedge funds. And it is only available to accredited investors; these are the only investors who meet the specific income requirements and who are qualified to invest in securities that are not registered with financial authority. That is why it is not available to retail investors.

And according to my research, the requirements for an individual to become an accredited investor are that they must have a network that exceeds 1 million dollars in the US, and that does not include the value of their primary residence. And what the hedge fund does with this money is that they invest in a wide range of assets because their goal is to get the highest return possible for their investors.

And it is managed by professional managers; they are the ones who trade and invest to increase the value of the fund. But it is not like traditional fund managers, who are only allowed to invest in stocks or bonds. With hedge funds, they are free to invest anywhere, including land, real estate, stock derivatives, and even cryptocurrency or bitcoin.

Therefore, the goal of the hedge fund is to get a significant investment return. Normally,  the managers receive fees, usually 2% of the asset funds. And they still have a performance fee of around 20% of any profit. That's why the managers are performing well because they have a lot of income from the fund. And those who are known to have funds with image below, they also participate in the derivative market and they are also its opponent on the other side of the trade.


3. Venture capital: these are the ones that specialize in financial entities, in companies that are just starting that they think have potential or market impact but also high risk. There are also many venture firms in new crypto projects, and these are the first supporters of the project and are not like traditional investors who just buy company stocks and sell when the value increases. This is also what helps the project rise, and sometimes they provide strategic advice and are appointed by board members to the project, and sometimes they also provide marketing so that the project can be listed immediately on the big exchanges. So they don't just fund the project; they also support it until the valuation of the crypto project increases.
Actually, it plays a crucial role in a crypto project in order to provide funds to innovators so that the crypto project can achieve its goal. And in return, this is where the venture capitalist firms will make money.

4. Mutual Fund: This is also an investment vehicle that gives full money to multiple investors, and this fund is used to buy diversified portfolios of stocks, bonds, or other securities. It gives individual investors access to various financial instruments. And if they do, it won't be easy either, to be honest.  There are also fund managers here who allocate funds to various assets, and normally the strategy they follow here is diversification.

There are different types of mutual funds, such as:

Equity funds are the type that invest primarily in stocks with the goal of earning faster compared to the money market and are a bit high-risk on the mutual fund side.

Bond/Fix Funds are the money invested in bonds and other debt instruments that are generally less risky than equity funds. but the return here is also lower.
 
The index fund replicates the performance of a specific index, like the SMP500, which has the same holdings in stocks that have the same proportion in the index.

So, overall, the mutual fund is lower risk compared to the hedge fund because most of the time they diversify the portfolio, unlike the hedge fund, which focuses on leverage and derivatives because they are aiming for a higher return. And there are also mutual funds that invest in crypto but only focus on large market caps like Bitcoin, Ethereum, and Litecoin. And they only put a small percentage of the portfolio in it.

5. ETF(Exchange Traded Fund): this is the investment fund traded on the stock exchange, such as stocks, commodities, cryptocurrency, or Bitcoin. It's just like an index fund. For example, in the Bitcoin spot ETF, the ETF that is tradable on the stock exchange tracks the value of bitcoin in the spot market. And it is available to any investor who participates in the stock market.

When an investor buys an ETF, the actual asset does not belong to them; instead, it belongs to the company that offers it. The difference between a mutual fund and a hedge fund is that their structure is passively managed, which is cheaper because there are no active fund managers that investors have to pay. So they prefer to invest in ETFs because they are cheaper here.

So I hope this adds knowledge to any of us in the community here on this forum. Have a good day, everyone.